DTE substation decommissioning could incur unexpected expense for city

The Dexter Downtown Development Authority received a treasurer’s report at its September meeting, Thursday morning.

Since treasurer Tom Covert was one of four absent DDA board members, Community Development Director Michelle Aniol gave the report. The DDA Cash Balances Report, which was included in the packet available online, was drawn up at the end of last August.

It shows that the DDA has $18,927.57 available in a TCF Money Market Account and $202,540.33 in a One National Bank Money Market Account and $250,000 in an account with the Ann Arbor State Bank. This means a total of $471,467.90.

The report estimated a projected revenue of $531,758.77 for the 2015/2016 fiscal year and $667,170.17 in expenditures. The report says that the Wellness Center Set Aside fund of $224,904 will more than make up for the shortfall. The final projected year end cash balance is $111,152.50.

After her report, Aniol took general questions. Dexter mayor Shawn Keough made a general comment about a decommissioning agreement the city is in with DTE Energy.

The decommissioning negotiations are ongoing. The mayor said that the current draft of the agreement has been sent to DTE for consideration. And if they do accept the agreement, in its current form, it could have some financial repercussions.

“I just want the board to be aware that … if DTE accepted it, it’s going to trigger about a 90 thousand dollar payment. Which we don’t have 25 of budgeted,” Keough said.

Keough urged the board to be aware of this situation and find a way to deal with it, should it happen before the city can prepare. Including, possibly, moving money around the different funds or asking for a payment delay. Several methods were discussed but none were settled on.

The half hour long meeting included an update on an ongoing Downtown redevelopment RFQ. An RFQ is a basic business strategy where a company, or a government entity, invites several bidders to compete for a contract.

This RFQ is for a redevelopment project downtown, done with the City Council and the Economic Preparedness Committee, according a memorandum attached to the packet. Aniol told the board that there will be a public forum RFQ Review Committee at the Dexter District Library on September 29th.

According to the packet, the 5 PM meeting will include presentations for an “MHT Housing” project, “Foremost Development” and “Home Renewal Systems.”

“The ad-hoc committee will be meeting next week to map out a post-interview strategy,” the Memorandum said. The Memorandum is available at dextermi.gov.

The board unanimously approved meetings for the next meeting, on October 15th.

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